Eye on the economy

Eye on the EconomyExisting Home Sales Improving

August 7, 2014

eyeonhousing.org

http://www.eyeonhousing.org/

Existing Home Sales2

• Existing home sales increased 2.4% in July

• Remains below July 2013 average

• NAR: existing home sales at a rate of 5.15 million

• Seasonally adjusted

• First-time buyer share continues to lag

• Read more here

http://eyeonhousing.org/2014/08/existing-sales-continue-to-increase/

Positive Outlook for Existing Sales

3

• NAR pending home sales increased 3.3% in July

• Read more here

• Consumer confidence increased in August

• Read more here

• Second quarter GDP revised to 4.2% expansion

• Read more here

• Home prices rose 6%

• Read more here

http://eyeonhousing.org/2014/08/pending-sales-resume-upward-trend/

http://eyeonhousing.org/2014/08/are-some-consumers-worried-about-the-future/

http://eyeonhousing.org/2014/08/gdp-in-the-second-quarter-faster-stronger/

http://eyeonhousing.org/2014/08/house-prices-record-annual-gains/

New Home Sales4

• New home sales fell 2.4% in July

• Annual rate of 412,000

• Last three month average remained the same

• Slower pace than the first two months of the year

• Read more here

http://eyeonhousing.org/2014/08/new-home-sales-hestitate/

Positive Outlook for New Home Sales

5

• Average effective mortgage interest rate at 4.25%

• Read more here

• A rise in builder confidence

• Read more here

• New home starts up 8.3% in July

• Read more here

http://eyeonhousing.org/2014/09/interest-rates-little-changed-on-new-home-loans/

http://eyeonhousing.org/2014/08/builders-confidence-continues-to-build/

http://eyeonhousing.org/2014/08/housing-construction-rebounds/

Individual Submarket Conditions

6

• Market share and count of custom home building increased in the second quarter

• Read more here

• Townhouse market was relatively flat

• Read more here

• Single-family (built-for-rent) remains off cycle highs

• Read more here

http://eyeonhousing.org/2014/08/custom-home-building-grows-during-the-second-quarter/

http://eyeonhousing.org/2014/08/townhouse-market-flat/

http://eyeonhousing.org/2014/08/single-family-built-for-rent-market-holding-steady/

Multifamily Construction7

• Multifamily (built-for-rent) reached new market share highs

• 94% of multi-family construction

• Read more here

• Multifamily Production Index gained five points for the second quarter

• 10th straight quarters above 50

• Read more here

http://eyeonhousing.org/2014/08/multifamily-built-for-rent-share-rises-again/

http://eyeonhousing.org/2014/08/apartment-and-condominium-market-shows-more-gains-in-second-quarter/

NAHB and FDIC Survey Data8

• Acquisition development and construction loan conditions continue to improve

• Indicated ongoing easing conditions

• Read more here

• FDIC data revealed 5.4% growth in stock of outstanding residential AD&C loans in the second quarter

• 16% higher than a year a go

• Read more here

http://eyeonhousing.org/2014/08/survey-indicates-continued-easing-of-adc-loan-conditions/

http://eyeonhousing.org/2014/08/stock-of-residential-adc-loans-up-16-over-last-four-quarters/

NAHB Analysis9

• Declining trend in new home median lot size

• Read more here

• Federal Reserve Survey examining household economic conditions

• Read more here

• Fair Market Rent estimates

• Read more here

http://eyeonhousing.org/2014/09/how-many-homes-fit-on-a-football-field/

http://eyeonhousing.org/2014/08/economic-well-being-of-u-s-households/

http://eyeonhousing.org/2014/08/increases-outnumber-declines-by-2-to-1-on-huds-fmr-list/

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